INTC, AMD and NVDA Forecast – Microchip Stocks Ready to Move?

INTC Technical Analysis

The market for Intel looks like it is going to be a little bit negative in the early hours at this point on Wednesday, but I wouldn’t read too much into it because we had such a strong day during Tuesday. A short-term pullback does make a certain amount of sense as we continue to consolidate and grind back and forth. The market will continue to follow this pattern, I believe, of eventually building up enough pressure to go to the upside. With that being said, I still like the idea of buying dips and I think Intel will eventually break out, but it’s got to get beyond the $27,50 cents level to really break free of what has been a long-term grind back and forth.

AMD Technical Analysis

Advanced Micro Devices finds itself basically flat in pre-market trading. It’s up just a touch. And really at this point in time, I think you’ve got a situation where we’re getting ready to get that golden cross. I think a lot of people are paying attention to the fact that it is forming. And really at this point in time, I think it’s a situation where you’re buying dips. AMD really took off after breaking what had been a relatively strong channel to the downside about three weeks ago. And since then, has just been on a tear to the upside. I still think you’re buying dips. I still think you’re looking for value.

NVDA Technical Analysis

Looking at Nvidia, it looks like we are going to open the market on Wednesday to the upside yet again, as we continue to extend higher. Ultimately, I think this is a market that will continue to be positive overall, because quite frankly, Nvidia is involved in just about anything AI related at this point. And therefore, it will continue to see this massive uptrend continue. In fact, we are in the midst of reaching escape velocity, which would suggest a move to roughly $220 a share over the longer term. Obviously, it will take some time to get there, and it will be very noisy along the way, but it does look like a market that is willing to at least make that attempt.

I like the idea of buying short-term pullbacks. I do believe that Nvidia probably has a bit of a short-term floor in it near the $150 level as traders continue to chase its performance. It does become a little bit of a self-fulfilling prophecy because if you have money with a money manager and that person does not own Nvidia, you’re probably asking questions. So, a lot of money managers probably find themselves being forced to buy this regardless. I like buying dips. I like Nvidia to go much higher.

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